PROFIT

Fashion revolves around many things, profit included; Businesses simply cannot survive if they are not bringing in added revenue. Profit however should have newly improved modern models that empower success and prosperity for stakeholders. Businesses that stick to their promises of enabling sustainable practises and caring for the planet should also be rewarded by consumers, with profit and increased value. The fashion industry is one of the most profitable and highest grossing industries globally with an estimated $1.7 trillion revenue pre-covid (Mckinsey, Euromonitor, 2021). The merchandising industry is part of the fashion business sector, and it involves focusing on consumer habits and trend analysis that can be reflected into buying, selling, and marketing in terms of window displays and mannequin dressing for shops and brands to lure an audience (Dillon. S, 2012). Merchandising is becoming more of a priority and is beginning to thrive more with fashion executives stating that it is their priority to improve go-to-marketing and merchandising within their brands (Mckinsey, 2023). Another sector that is reliant on a brands success is marketing and this has been proven during uncertain economic times. During a study in 2010 after the recession collection of 4700 companies were tracked with 17% of them going bankrupt; The 83% of surviving companies were found to have reallocated their funds into growth techniques such as marketing (Ranjay Gulati, Nitin Nohria and Franz Wohlgezogen,2010) (Erik Clausen,2020). The main thing for companies to make sure they do not do during uncertain economic time though is not being too aggressive and be empathetic with ethe consumer during a time of struggle and “get close to them when other competitors may have ignored them” (Ranjay Gulati, Nitin Nohria and Franz Wohlgezogen,2010). For creative directors to maintain a profitable brand for the company they must make sure to not blur the lines between art and business. This means taking risks from both the creative and the business officials whilst also measuring how worth these risks are worth taking. The risks can be worth taking however because it engages in clientele, both old and new whilst also bringing in a sizeable revenue (Ajaz Ahmed,2013). Another main priority is collaborating with consumers and always taking into account what they find value for money creativity wise (Josh De souza Crook, 2017). The main accounting reasons for a brands success profit and revenue wise is always going to be through collaboration and partnership; This can be collaborating with consumers, marketers, merchandisers, or anyone but the critical point would be for everyone to be on the same page and success starts from there. 

REFERENCES: 

Global Fashion Industry Statistics (2023) FashionUnited. Available at: https://fashionunited.com/global-fashion-industry-statistics#:~:text=Revenue%3A%20%241.7%20trillion%20dollar%20industry,reports%20by%20Euromonitor%20and%20McKinsey. (Accessed: 22 October 2023). 

Barrelet, D. et al. (2023) Great Merchandising Never Goes Out of Fashion, McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/great-merchandising-never-goes-out-of-fashion (Accessed: 22 October 2023). 

Clausen, E. (2020) Council post: Marketing rules to follow during Uncertain Economic Times, Forbes. Available at: https://www.forbes.com/sites/forbesagencycouncil/2020/04/03/marketing-rules-to-follow-during-uncertain-economic-times/?sh=6be441c34a36#:~:text=Use%20the%20time%20to%20focus,marketing%20to%20be%20there%20waiting. (Accessed: 22 October 2023). 

Gulati, R., Nohria, N. and Wohlgezogen, F. (2014) Roaring out of recession, Harvard Business Review. Available at: https://hbr.org/2010/03/roaring-out-of-recession (Accessed: 22 October 2023). 

Ahmed, A. (2013) Bridging the gap between art and business | Ajaz Ahmed, The Guardian. Available at: https://www.theguardian.com/media-network/media-network-blog/2013/oct/16/bridging-gap-art-business (Accessed: 22 October 2023). 

De Souza Crook, J. (2017) Compelling fashion business: Bridging the divide between creative …, arts.ac.uk. Available at: https://www.arts.ac.uk/colleges/london-college-of-fashion/stories/compelling-fashion-business-bridging-the-divide-between-creative-vision-and-commercial-reality (Accessed: 22 October 2023). 

Dillon, S. (2011) The fundamentals of fashion management. Available at: https://r3.vlereader.com/Reader?ean=9782940447237 (Accessed: 22 October 2023).